Profit and Loss

Terms related to Profit and Loss

• Cost price (C.P): Price at which an item is purchased.
• Selling price (S.P): Price at which an item is sold.
• Profit: When the selling price is greater than the cost price, it is called profit.
• Loss: When the selling price is less than the cost price, it is called as loss.
• Profit or loss per cent: Profit or Loss after selling an item of Rs. 100(C.P).
• Discount: Discount is the reduction in the market price.
• Market Price: Retailer marks the price on a label and attaches it to the articles.

Profit & Loss Calculation

Profit Calculation

Profit or Gain = selling price (S.P) – cost price (C.P)

Loss Calculation

Loss = Cost price(C.P) – Selling price(S.P)

Note: Profit or Loss per cent is always calculated on cost price(C.P).

Formulas to calculate Profit & Loss

(i) % of Profit	=		Profit x 100
			Cost price

(ii) % of Loss	=		Loss x 100
			Cost price

(iii) In case of profit:

S.P	=	C.P		100 + % of profit
				100

C.P	=		S.P x 100
			100 + % of profit

(iv) In case of Loss:

S.P	=	C.P		100 – % of Loss
				100

C.P	=		S.P x 100
			100 – % of Loss

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